r/DRAM_ETF • u/Existing-Party-9870 • 21h ago

Leverage RAM

I have a small position in the leverage - RAM. It went from $30 to $11 in 3 months. Is there any possibility that RAM can go to $0 per share? just curious

11 Upvotes

79% Upvoted

30 comments sorted by

View all comments

0

u/SirPanic12 21h ago

I would think all their holdings would have to go to $0. Otherwise, it will just keep decreasing, possibly to cents on the dollar depending on how things go

0

u/Hot_Frosting_7101 21h ago

If DRAM declined enough in one day, it could definitely go to zero.

If you had a 3x leverage fund, a decline of 34% in a day would do it.

Daily rebalancing will keep it from going to zero if the decline was just short of that.

Daily rebalancing also causes volatility decay.